In these times of peril, a business needs to exercise restraint, especially in matters of cost. Half of the world is currently in their homes, and the business activities all over the world have been severely hampered. Even if the businesses around the globe have taken a hit due to COVID-19, all the companies need to keep track of their finances and save as many funds as possible, especially now.
The function of bookkeeping may be very dull and tedious, but it is one of the most basic and essential functions which a business must follow. Bookkeeping allows a business to track all the activities of the business and helps them to understand the present situation of the company. A business may follow one of the two types of bookkeeping:
1.Internal Bookkeeping
In this type of bookkeeping, the business tends to hire a dedicated bookkeeper which records and tracks all the data relating to a financial transaction made by a business.
2.Outsourced Bookkeeping
In this type of bookkeeping, the management hires the service of an outsourced bookkeeper. This bookkeeper is not a part of the business and is a third party that only provides its services to the business.
Here are eight Reasons how outsourced bookkeeping can save you money and also help increase the profitability of your company.
·Saving Costs
Outsourcing bookkeeping services can help a business to save a big chunk of its funds. As you do not hire a team of bookkeepers and accountants, you save money in infrastructure, their training, hiring, and any other additional costs which are required by them.
·Value Addition
An outsourced bookkeeper provides more value to its business as an outsourced accountant is not associated with the business and is a third party. This is the reason the outsourced accountants will provide a broader perspective on the problems posed by a company and will also offer various solutions depending upon the requirement of the company.
·Lowering Cost of Operations
Hiring a single dedicated bookkeeper or a team for managing the financial accounts of the business will significantly increase the cost of operations of the business. An outsourced bookkeeper will help reduce the total cost incurred by the business.
·Enhancing Proficiency
This means that an outsourced bookkeeper will not only professionally perform the bookkeeping activities but will also provide the correct data for the various departments of the business.
·Saves time for Management
Hiring the services of an outsourced bookkeeper will help the management to focus on the other necessary business activities. As all the bookkeeping functions will be handled by a third party, the management has time to adequately allot the time and resources to the different departments of the business.
·Provides Guidance
Most of the bookkeepers provide timely and accurate business advice to the management. These are more reliable as the bookkeepers are the people who first record the data making them the first few people who are privy to the financial information of a business.
·Provides Confidentiality
The outsourced bookkeepers are the third party and have no connection to its clients. This makes it very important for these bookkeepers to provide security and confidentiality as if the financial data of a client got into the wrong hands, it could cause a lot of problems.
·Up to date knowledge in the Industry
The outsourced accountants work for a number of businesses in various sectors. This makes them know as to what are the latest developments in the business environment. These bookkeepers will also be able to see the current financial situation of a business in a different light. They will be able to provide a solution to the problem accordingly.
There are many more reasons which make outsourced bookkeeping and accounting services a very lucrative option, especially in the present situation where saving the funds of the business are highly important. The use of the latest technology and diverse perspectives assures the growth of the company in the company years. However, the last decision as to which bookkeeping function should be taken by the management of the company keeping in mind the requirements of the business.
If you are convinced by the benefits of Outsourcing the Accounting and Bookkeeping functions of a business or want to know more about it, you can always Contact Us. We, at JAXA Chartered Accountants, will be glad to answer any of your questions. JAXA Chartered Accountants is an ISO 9001:2015 certified financial consultancy and provides various services such as Accounting Services, Auditing Services, Bookkeeping Services, Payroll services, etc. Do Have a look at the various services offered by us.
